An RE5 certificate shows that you have passed the Regulatory Examination for Representatives. Under the Financial Advisory and Intermediary Services (FAIS) Act 37 of 2002, representatives of authorised financial services providers (FSPs) generally have to pass it. To get the certificate, you register with the FSCA-appointed examination body (currently Moonstone) using your ID or passport number and, if you have one, your FSP’s number. You then pass a 50-question multiple-choice exam by answering at least 33 questions correctly.
RE5 is only one part of the fit and proper requirements set by the Financial Sector Conduct Authority (FSCA) in Board Notice 194 of 2017. You also need honesty and integrity, a recognised qualification, relevant experience, class of business and product-specific training, and ongoing continuous professional development (CPD).
Business Requirements at a Glance
- Who writes it: representatives in all categories of FSPs (Categories I, II, IIA, III and IV)
- Who does not: representatives appointed only for funeral and friendly society benefits, only for Tier 2 financial products, or only for the execution of sales of Tier 1 products
- Exam format: 50 multiple-choice questions with four options each, closed book, two hours
- To pass: at least 33 correct answers out of 50
- Deadline for supervised representatives: pass within two years of your date of first appointment (DOFA)
- Examination body: Moonstone, which runs registration, venues, results and certificates for the FSCA
Registration and Legal Requirements
Section 26 of Board Notice 194 of 2017 sets out which regulatory exam each role must pass. Its Table A requires RE5 for representatives in every FSP category, subject to the exemptions above. Key individuals and FSPs write RE1 instead, plus RE3 or RE4 in some categories. If you are both a representative and a key individual, you need both exams.
The Notice requires the exam to be passed before appointment. However, FSCA FAIS Notice 86 of 2018 (Exemption of Services under Supervision) lets a new representative who does not yet meet all the competence requirements render services under supervision. This requires a written supervision agreement with the FSP. A supervised representative must pass RE5 within two years of the date of first appointment. If you miss that deadline, you cannot stay on the FSP’s register of representatives for the affected products.
RE5 does not replace the other fit and proper requirements. Passing it does not meet the qualification requirement. For that, you need a qualification on the FSCA’s list of recognised qualifications for the products you advise on.
Documents and Ownership Information Required
To register for the RE5 exam, Moonstone asks for:
- Your South African ID number or passport number
- The FSP number of the provider that appointed you. If you are not yet with an FSP, you can leave it blank or enter 0
- Your personal, contact and professional details
To be appointed as a representative, the FSP records your fit and proper evidence in its competence register. That evidence covers your recognised qualification, your RE5 result, class of business and product-specific training, and your CPD. The FSP also needs your supervision agreement if you are working under supervision. Keep your own copies. The RE5 certificate is the proof of the exam you will be asked for whenever you move to a new FSP.
Tax, Licence and Compliance Requirements
RE5 is a personal competence requirement, not a business licence. The FSP licence belongs to the provider that appoints you, and the FSP is responsible for keeping you on its register of representatives. Getting an RE5 certificate involves no separate SARS or CIPC registration. If you plan to trade as an independent adviser, you need your own FSP licence from the FSCA. The FSP and its key individuals then have their own exam requirements, starting with RE1.
After appointment, the ongoing compliance requirements under Board Notice 194 are:
- Class of business and product-specific training must be completed before you give advice on a product, unless you are exempt
- CPD runs over a cycle from 1 June to 31 May. The minimum is 6 hours for a single subclass of business, 12 hours for more than one subclass within one class, and 18 hours for more than one class of business
- CPD evidence must be submitted to your FSP within 15 days after the cycle ends
- Honesty, integrity and good standing must be maintained throughout. A representative who stops meeting fit and proper requirements can be debarred by the FSP
Process, Deadlines and Ongoing Obligations
- Confirm with your FSP’s compliance officer that RE5 applies to your role and products, and note your date of first appointment.
- Register online through Moonstone’s regulatory exam portal, or by phone or email using the details on that page. Choose a venue and date. Registration closes 11 working days before an exam date, and payment is due within 24 hours of booking.
- Prepare using the FSCA’s RE5 preparation material. The questions test the qualifying criteria for RE5, which are based on the FAIS Act, the General Code of Conduct, the fit and proper requirements and related notices.
- Write the exam. Results are released within a maximum of 20 working days, after FSCA approval.
- Download your RE5 certificate from Moonstone’s FAIS exam site and give a copy to your FSP for its competence register.
Book early in your two-year window. If you fail, you can book another sitting without registering again, but each attempt is a separate exam with its own fee.
Frequently Asked Questions
What is the RE5 certificate price?
The exam fee is set by the FSCA, and you pay it per sitting. Moonstone currently lists it as R1 300 (VAT inclusive) per exam per candidate. Fees are revised from time to time, so check the current amount on Moonstone’s exam body page before booking. Downloading your certificate after you pass is done through the exam portal.
How do I get my RE5 certificate or results?
Log in to Moonstone’s FAIS exam site with the ID or passport number you registered with. Choose the option to update your booking or get results. A password is emailed to the address you registered with, and you can then download your certificate.
Can I work as a representative before I pass RE5?
Yes, but only under supervision under a written supervision agreement with your FSP. You must pass within two years of your date of first appointment.
Can I write RE5 without being employed by an FSP?
Yes. Moonstone’s registration lets you leave the FSP number blank or enter 0, so you can write the exam before you are appointed.
What is the difference between RE5 and RE1?
RE5 is for representatives who give advice or render intermediary services. RE1 is for FSPs and key individuals who manage or oversee financial services. RE1 has 80 questions and a two-and-a-half-hour sitting.
Does RE5 count as my qualification?
No. The qualification requirement is separate. You need a qualification on the FSCA’s list of recognised qualifications for the financial products you are appointed for.
RE5 rules, fees and fit and proper requirements are set by the FSCA and are amended from time to time. Confirm the current position on the FSCA’s regulatory examinations FAQ or with your FSP’s compliance officer.
See also company registration requirements.